OriginClear Inc. the Clean Water Innovation Hub™, and Buda, Texas-based Plastic Welding and Fabrication, Ltd. (PWF) jointly announced today a Memorandum of Understanding (MOU) for a strategic partnership between OriginClear’s subsidiary, Water On Demand, Inc. (“WODI”), and PWF.

PWF is already a key fabricator of highly durable, patent-based enclosures for Modular Water Systems (MWS), the technology division of WODI that designs and develops highly scalable systems for self-contained water treatment and transportation. The MOU enhances the strategic relationship and enables MWS to build its complete water systems right where the enclosures are manufactured, for maximum efficiency and speed.

Additionally, the parties signed a Letter of Intent (LOI) which provides a framework for negotiating a definitive agreement for WODI to acquire PWF and, if executed, would establish the first in-house manufacturing facility for WODI’s Modular Water Systems division. The acquisition is expected to be accretive (meaning that it would increase WODI’s earnings per share). The parties caution that talks are in an early stage and may not succeed.

“We are excited to continue our work with PWF owner and CEO, Shaun Shoemake and his talented team,” said Daniel M. Early, P.E., OriginClear’s chief engineer, and president of MWS. “Modular Water Systems has tremendous growth potential due to its highly standardized, modular line of products. To capitalize on this potential, we need the ability to rapidly scale production. The agreement with PWF is intended to give us the ability to rapidly expand the business through access to a fully integrated manufacturing supply chain.”

“We believe this strategic partnership will further reinforce our strong working relationship,” said Mr. Shoemake. “We are pleased to prioritize Modular Water Systems for the fabrication of its proprietary High-Density Polyethylene (HDPE) enclosures, and the impact-resistant Copolymer Polypropylene (CPP) material, and for MWS to use our premises to build their complete water treatment systems into these enclosures, for maximum supply chain efficiency.”

“Our national water infrastructure is falling behind by nearly $100 billion per year,” said Riggs Eckelberry, OriginClear CEO and Chairman of WODI. “The solution is to let businesses treat and even recycle their own water, making better use of scarce fresh water. And with Water On Demand, they can simply sign a service contract, with little to no capital required. The funding comes from everyday investors, making water an investable asset for the first time.”

In October of 2023, WODI and Fortune Rise Acquisition Corporation (FRLA) announced a Business Combination to create a Nasdaq-listed Company. The planned acquisition of PWF is not conditioned on the consummation of this Business Combination.

FRLA is a blank check company incorporated in February 2021 as a Delaware corporation formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.

FRLA is a “shell company” as defined under the Exchange Act of 1934 as amended, because it has no operations and nominal assets consisting almost entirely of cash. FRLA will not generate any operating revenues until after the completion of its initial business combination, at the earliest. To date, FRLA’s efforts have been limited to organizational activities and activities related to its initial public offering as well as the search for a prospective business combination target.

 

Source:businesswire.com

Report Abuse